smbpasswd -j DOMAIN fails strangely!

[Quicker than the human eye]

My setup is rather simple.  Two NT workstations WISDOM and JUSTICE
(10.10.0.3 and 10.10.0.3) and a Samba server TRUTH running Linux RH6.0
(with appropriate updates!) at 10.10.0.1

When attempting to get TRUTH to act like a PDC. I have the requisite
smb.conf options:

[global]
workgroup = VIRTUE 
netbios name = TRUTH 
interfaces = 10.10.0.1/16
local master = yes
domain master = yes 
preferred master = yes
domain logons = yes
wins support = yes
encrypt passwords = yes 
smb passwd file = /opt/samba-tng/private/smbpasswd 
security = user 

I can add an account for TRUTH fine.

     /opt/samba-tng/bin/smbpasswd -a -m TRUTH

returns:

     Added user TRUTH$.
     Password changed for user TRUTH$

However :

     /opt/samba-tng/bin/smbpasswd -j VIRTUE

returns:

Joining Domain as PDC
trust_account_file_name: /opt/samba-tng/private/VIRTUE.TRUTH.mac
trust_account_file_name: /opt/samba-tng/private/VIRTUE.TRUTH.mac
do_reseed: got 40 bytes from /dev/urandom.
cli_connection_init_auth: \\TRUTH \PIPE\NETLOGON
copy_nt_creds: null creds
cli_net_use_add
copy_nt_creds: user domain nopw Yes flgs: 0
cli_find: \\TRUTH
copy_nt_creds: null creds
cli_init_creds: ntlmssp_flgs: 0
copy_nt_creds: user domain nopw Yes flgs: 0
cli_init_creds: ntlmssp_flgs: 0
resolve_srv_name: \\TRUTH resolve_name:
Attempting lmhosts lookup for name TRUTH startlmhosts: Can't open lmhosts
file /opt/samba-tng/lib/lmhosts. Error was No s uch file or directory
resolve_name: Attempting host lookup for name TRUTH
cli_establish_connection: TRUTH<00> connecting to TRUTH<20> (10.10.0.1) -
[] wi th NTLMv1, nopw: Yes
socket open succeeded.  file name: /tmp/.smb.0/agent
socket connect to /tmp/.smb.0/agent failed: Connection refused
redirect FAILED, make direct connection
Connecting to 10.10.0.1 at port 445
error connecting to 10.10.0.1:445 (Connection refused)
Connecting to 10.10.0.1 at port 139
[000] 81 00 00 48 20 46 45 46 43 46 46 46 45 45 49 43 ...H FEF CFFFEEIC
[010] 41 43 41 43 41 43 41 43 41 43 41 43 41 43 41 43 ACACACAC ACACACAC
[020] 41 43 41 43 41 00 20 46 45 46 43 46 46 46 45 45 ACACA. F EFCFFFEE
[030] 49 43 41 43 41 43 41 43 41 43 41 43 41 43 41 43 ICACACAC ACACACAC
[040] 41 43 41 43 41 41 41 00 00 00 00 00             ACACAAA. ....
write_socket(4,76) write_socket(4,76) wrote 76
..
..
..
cli_nt_session_open: cli_nt_create failed on pipe \NETLOGON to machine
TRUTH.  Error was ERRSRV - ERRaccess (The requester does not have the
necessary access  rights  within  the specified  context for the reque
..
..
..
cli_shutdown
cli_nt_setup_creds: request challenge failed 
2000/01/25 16:59:11 : change_trust_account_password: Failed to change
password for domain VIRTUE.   
Unable to join domain VIRTUE.  


Any ideas as to the problem here?  After I execute this I get a
VIRTUE.TRUTH.mac file in /ops/samba-tng/private/ it contains:
6EEDFD6884E8A287030FA5E86F800303:TLC-388E2056